002129SZSE
🚨 Material Event

Announcement on the Upgrade and Renovation Project of BC Battery and Component Base Capacity for TCL Zhonghuan

✨ AI Summary

TCL Zhonghuan plans to upgrade and renovate its existing battery and component production lines to BC technology. The project involves a total investment of 2.6 billion yuan and aims to enhance competitiveness in the high-efficiency BC market. The company expects to complete the upgrades by Q3 2026, with full conversion of battery capacity and partial conversion of component capacity.

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Securities Code: 002129

Securities Abbreviation: TCL Zhonghuan

Announcement No.: 2026-041

TCL Zhonghuan Renewable Energy Technology Co., Ltd.

Announcement on the Upgrade and Renovation Project of BC Battery and Component Base Capacity

The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, without false records, misleading statements, or major omissions.

Special Instructions:

  1. Project Name and Investment Amount:

(1) 20GW High-efficiency Polysilicon Battery Technical Renovation Project, with an estimated investment of 1.4 billion yuan.

(2) 25GW High-efficiency Polysilicon Component Technical Renovation Project, with an estimated investment of 1.2 billion yuan.

  1. Technical Renovation Direction: BC Technology

  2. Procedural Compliance: This matter has been reviewed and approved by the 23rd meeting of the 7th Board of Directors of TCL Zhonghuan Renewable Energy Technology Co., Ltd. (hereinafter referred to as the "Company" or "TCL Zhonghuan"), and does not require submission to the shareholders' meeting for approval.

  3. Risk Warning:

(1) If the performance and stability of the battery and component products produced after the BC production line technical renovation do not meet expectations, there is a risk of market share falling short of the planned targets.

(2) The technical renovation project requires a significant short-term capital investment. The Company will raise funds through various channels, including its own capital (including commercial paper) and financing from financial institutions, which may put pressure on the Company's short-term cash flow and potentially affect financial expenses and operating performance.

(3) The current imbalance in supply and demand in the photovoltaic industry continues, and the prices of the main industrial chain are still in a period of bottoming out and fluctuation. Although the BC battery and component products from this technical renovation have a certain premium advantage, if future market demand falls short of expectations, there is a risk that the project's returns will not meet expectations.

(4) During the construction and operation of this technical renovation project, it may be affected by factors such as changes in the macroeconomic environment, industry policies, and market conditions. Therefore, the implementation of this technical renovation project may be subject to delays, changes, suspension, or termination.

I. Overview of External Investment

(I) Basic Situation of External Investment

The concentrated release of production capacity and demand fluctuations have led to a continued imbalance in the supply and demand of the photovoltaic industry. However, the global strategic value of new energy is increasingly prominent, and the photovoltaic industry still has long-term development space. TCL Zhonghuan adheres to a strategy of moderate integration and globalization, seizing cyclical opportunities to supplement its battery and component shortcomings through internal growth and external mergers and acquisitions, focusing on major global energy markets and high-premium customers to build new drivers for business growth.

Following the completion of the acquisition of Yidao New Energy Technology Co., Ltd. (hereinafter referred to as "Yidao New Energy") by TCL Zhonghuan, the Company now possesses 20GW of battery production capacity and 50GW of component production capacity. Leveraging its existing core BC patent advantages, differentiated lithography technology, and process reserves, combined with an assessment of industry technology trends, the Company plans to upgrade the existing battery production capacity at its Quzhou and Xinzhou bases to 20GW BC battery capacity, with an estimated investment of 1.4 billion yuan. It also plans to upgrade the existing component production capacity at its Yixing, Tianjin, Quzhou, Jingshan, and Zhangzhou bases to 25GW BC component capacity, with an estimated investment of 1.2 billion yuan, in order to capture the market's sustained demand for high-efficiency BC component products and enhance its overall competitive advantage.

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